REBusinessOnline

Financing Flexibility Remains Key in Today’s Fluid Environment

Every year brings a few question marks in terms of what’s ahead. Some years have more unknowns than others; many agree 2019 is one of those years.  From politics to the stock market to trade tensions, this year has its share of variables on top of traditional uncertainties, such as natural disasters. Add lots of capital chasing fewer deals, an affordability imbalance, and a disconnect between buyers and sellers, and those question marks continue to multiply. Lenders have generally …

Multifamily Sector, Energizer Bunny Share Common Trait, Says MBA’s Woodwell

SAN DIEGO — The multifamily sector is like the Energizer Bunny, says Jamie Woodwell, vice president of commercial and multifamily research for the Mortgage Bankers Association (MBA). “It just keeps going and going and going.” The product type remains an investment darling. Although 600,000 units are currently under construction nationally — maintaining an elevated level of building activity that is the highest since the mid-1970s — consumer demand remains strong. According to …

IRR: Approach Commercial Real Estate with Caution in 2019

DENVER — The post-Great Recession recovery years have seen unprecedented growth, but there’s plenty of volatility and cause for caution in 2019, according to Integra Realty Resources' (IRR) Viewpoint 2019 publication.  The annual report provides national and market-by-market overviews across five property types: office, multifamily, retail, industrial and hospitality. Viewpoint 2019 also examines trends from the U.S. economy, housing, capital markets, interest rates and employment, …

Fading Tailwinds Will Limit U.S. Economic Growth in 2019, Says MBA’s Chief Economist

SAN DIEGO — Despite a strong U.S. job market, GDP growth will slow now that the tailwind from the Tax Cuts and Jobs Act has largely dissipated, predicts Michael Fratantoni, chief economist with the Mortgage Bankers Association (MBA). More specifically, Fratantoni is forecasting the nation’s economy to grow 2 percent in 2019, down from 3.1 percent in 2018. Passage of the sweeping tax bill in late 2017 and signed into law by President Donald Trump “led to some front-loading of …

Relationships Should Stand The Test Of Time, Regardless Of The Market

Paul Letourneau, manager of commercial lending for Alliant Credit Union, believes the more things change, the more fundamental business practices stay the same. In the lending world, this includes the ability to form and maintain relationships with key sponsors and brokers. As a credit union, how does Alliant compare to other capital sources? Letourneau: Alliant is looking to complement the prospect’s existing lending relationships. Alliant is a national lender and …

2019 Will Require Creativity, Flexibility, Discipline

Paul Woodworth, head of agency lending for SunTrust, believes a lot of focus will remain on multifamily in 2019, but that doesn’t mean that multifamily deals will be a piece of cake. Instead, he predicts some ingenuity will be required on the part of the lender in order to keep momentum strong following an active 2018. What are the best ways lenders can work with developers to increase our nation’s affordable housing supply? Woodworth: Lenders should play a consultative and …

Refis, Retail and Resources

Chad Thomas Hagwood, senior managing director and regional manager for the Southeast at Hunt Real Estate Capital, closes loans across the nation and sees opportunities in multiple sectors in 2019. While multifamily is still a standout, his scope extends beyond the industry buzzwords common today. Do you think refinancing activity will be as robust as it’s been in the recent past? Hagwood: There is no doubt refinancing will remain very active in 2019. Treasury yields have …

Cushman & Wakefield: Office Absorption Keeps Up With Construction, Lowering Vacancy Rate

CHICAGO — Net absorption in office markets across the United States exceeded new construction in the fourth quarter of 2018, according to Cushman & Wakefield. This enabled the national office vacancy rate to drop to 13.2 percent.  Nationwide absorption during the fourth quarter totaled 20 million square feet and marked the 33rd consecutive quarter of positive absorption since 2010.  The total volume of space under construction increased slightly to 114.2 million square …

Competition Will Continue for Top Quality Commercial Real Estate in 2019

Matt Rocco, president of Grandbridge Real Estate Capital, realizes this year may not maintain the exact same lending velocity as last year. However, he sees plenty of opportunities in workforce and affordable housing, as well as in industrial real estate. This, combined with plenty of capital, may keep competition fierce for strong commercial assets in the foreseeable future. Many believe lending velocity may slow this year compared to 2018. What is your take on this? Rocco: We expect …

Experience Pays Off for Reputable Seniors Housing Operators

Mark Gould, national production manager of M&T Realty Capital Corporation, believes the seniors housing continuum of care may hold vast opportunities for those with the know-how and discipline to weather any short-term storms. Where do lending opportunities – and challenges – lie in 2019? Gould: We have been active in the seniors housing sector for a very long time. We see this asset class continuing to grow in 2019 as the U.S. aging population will drive …

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